CIMA BA3 Exam : Fundamentals of Financial Accounting

  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: Sep 29, 2026
  • Q & A: 395 Questions and Answers

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CIMA BA3 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Preparation of Accounts for Single Entities30%- Preparation of simple cash flow statement
- Manufacturing and inventory accounting
- Preparation of statement of financial position
- Preparation of income statement
- Adjusting entries and trial balance
Topic 2: Analysis of Financial Statements10%- Interpretation using accounting ratios
- Limitations of financial statements
- Liquidity, profitability and solvency analysis
Topic 3: Recording Accounting Transactions50%- Correction of errors and control accounts
- Sources of records and books of prime entry
- Double-entry bookkeeping and ledger accounts
- Reconciliations (bank, receivables, payables)
- Accounting for assets, liabilities, equity and expenses
Topic 4: Accounting Principles, Concepts and Regulations10%- Elements of financial statements
- Accounting standards and principles
- Conceptual and regulatory framework
- Nature and objective of financial accounting

CIMA Fundamentals of Financial Accounting Sample Questions:

Question #1

If a profitable entity is not required to register for sales tax with its local tax authority, which of the following statements is TRUE?

  • A. Sales tax will not be added to the cost of goods and expenses supplied
  • B. Sales tax will not be added to the sales price of goods invoiced to customers
  • C. Profit for the year will be reported net of sales tax.
  • D. A sales tax receivable account will be prepared in the nominal ledger
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

Refer to the Exhibit.

Which of the following balances normally result from the double-entry system of book-keeping?
The answer is:

  • A. Option B
  • B. Option C
  • C. Option A
  • D. Option D
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

Refer to the exhibit.

The trial balance of Monchu Partnership, as at 30 June 2006, has a suspense account. Subsequent investigations revealed that:
(1) A payment of £352 to Mr. Tan was posted as £325.
(2) A remittance of £450 received from Arumugam was credited to Armits accounts.
(3) Salaries of £12000 have not been posted from the cash book.
Monchu suggested the following adjustments:
The appropriate journal entries are:

  • A. (b), (e) and (f) only
  • B. (a), (c) and (e) only
  • C. (b), (d) and (f) only
  • D. (b) and (f) only
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

VWX is registered for sales tax in Country B A sales invoice to its mam customer shows the following information:

What journal entry will WVX process to record this transaction in its nominal ledger?
A)

B)

C)

D)

  • A. Option B
  • B. Option C
  • C. Option A
  • D. Option D
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #5

On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger. Which of the following statements is TRUE?

  • A. The bonus issue is valued at $3 per share and the debit entry is to the cash account
  • B. The bonus issue is valued at $1 per share and the debit entry is to the cash account
  • C. The bonus issue is valued at $1 per share and the debit entry is to the share premium account
  • D. The bonus issue is valued at $3 per share and the debit entry is to the share premium account
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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